The neck rally in gold prices in the last two months of the growing world uncertainty has excited retail investors, but experts advise to address it with a pinch of caution.
National gold prices for 10 grams have already crossed the ₹ 1 Lakh mark on Tuesday and the bullish tone still remains intact.
The yellow metal has increased more than 26 percent or 20,800 for 10 grams so far in 2025.
However, gold prices on Wednesday fell by two percent to ₹ 96,085 for 10 grams against ₹ 98.484 registered on Tuesday, according to the data of the Bullio Association and jewelry of India. This follows the fall in the spot Gold prices in Comex at 0.7 percent to $ 3,357 per ounce, while US gold
Balanced portfolio
Puneet Singhania, director, Master Trust Group, said that tariffs and the risk of a possible tariff war took the gold to New High, a touch of decalcalation can reverse those profits in a short time.
After the recent increase in gold prices, the portfolio of many investors may have had overweight with gold and seems like a good opportunity to rebalance when changing health towards actions, he said.
As the Indian equations have fallen in recent months, many fundamental strong actions are now quoted to attractive valuations and open an opportunity for long -term investors to accumulate businesses at discounted prices, he added.
Indians yearn to gold
As things are, Indian households have 27,000 tons or gold much higher than the collective reserves of the 10 main central banks in the world, including those of the United States, Germany, Italy, France, Russia, China, Switzerland, Japan and Turkey. India consumes around 750-800 tons per year, mainly in the form of jewelry.
Interestingly, after the strong increase in gold prices, the percentage of gold jewelry purchases involving exchanges increased from approximately 20 percent to 50 percent.
Prithviraj Kothari, managing director of Riddisiddhi Bullions, said retail investors should have a cautious perspective about gold as any political or economic developments, partly a resolution of the running commercial tariff between the gold of the US Electronic electric electric, so so so so so so so as much electric electric. But so so so so so so so so so so so so so so so so so fair, but so so so so so so so so so so so so so but so so but so so fair and so fair, so so so so but so so but so so but so but so but so so but so so but so so so but so so but so so so but so so so but so so so so so so fair.
Instead of pursuing some short -term gains in gold, he added that retail investors should assign 10 to 15 percent of the portfolio to gold in a volatile world with rapid changes in the global economy.
Manav Modi, a senior analyst, basic products research, Motilal Oswal Financial Services said investors must maintain a cautious but optimistic perspective about the current gold price rally.
Ongoing geopolitical tensions, a volatile dollar index, the purchase of the central bank and the fears of slower global growth will continue to provide underlying support for gold prices, he said.
The lowest interest rates in the US. UU. Tend to support gold prices, therefore, the increase in expectations of interest rates cuts should be taken as a positive signal for gold. However, investors must be conscious or potential driven by changes in market feeling or geopolitical developments that could relieve the appeal of the sure golden view, he said.
Posted on April 23, 2025